SHENZHEN, China, Feb. 7, 2008 -- Comtech Group, Inc. (NASDAQ: COGO), a leading provider of customized design solutions for the technology manufacturing sector in China, is forming a breakthrough alliance with Freescale Semiconductor, one of the world’s largest semiconductor companies for the automotive, consumer, industrial, networking and wireless markets.

The alliance pairs Freescale’s global leadership in the design and manufacture of semiconductors with Comtech’s unique ability to adapt partner technology to China and transform it into a sustained revenue growth opportunity. The collaboration will focus on the use of Freescale’s semiconductor technology in Comtech’s customized module solutions for its OEM (Original Equipment Manufacturing) and ODM (Original Design Manufacturing) customers, with an initial focus on automotive electronics. The companies plan to expand their efforts to develop solutions for digital consumer electronics products.

The collaboration with Freescale reinforces Comtech’s commitment to the automotive industry in China and builds on its experience in module and sub-system solutions for handsets and digital media products to support automotive products. Last year, the company began shipping auto entertainment technology solutions to a number of leading manufacturers in China, enabling the installation of cutting edge MP3/iPod music systems in new and existing vehicles.

The companies plan to focus on customers who serve the Chinese market and capitalize on the vigorous growth in China’s automotive sector. According to China Association of Automobile Manufacturers, China sold 8.8 million vehicles in 2007, up 1.5 million from the previous year. It has now surpassed Japan and Germany to become the second largest vehicle market in the world, following only the United States. Forecasts for the future remain strong with Chinese leadership targeting combined vehicle and auto parts exports of $120 billion or about 10% of the world’s total vehicle trading volume by 2015.

Jeffrey Kang, president and chief executive officer, Comtech Group, Inc. said, “This collaboration positions Comtech to benefit from the exciting growth in China’s automobile industry. With China poised to become the world’s automotive manufacturing center, our solutions will expand to international markets and become long term growth drivers for the company.”

“Freescale is the world’s leading semiconductor provider for the automotive industry, as well a leader in consumer electronics” said Kai Wang, vice president and general manager, Asia Pacific, Freescale Semiconductor. “We look forward to collaborating with Comtech, a company known for its strong customer relationships, strong research and development capabilities, and remarkable ability to identify and capitalize on China’s high growth industries. Together, we plan to deliver innovative solutions to address China’s rising demand for automotive electronics.”

Using Comtech’s innovative business model, the companies expect to generate meaningful results by the second half of 2008. Comtech remains committed to delivering strong performance in key markets such as digital media, mobile handsets and telecom equipment while continuing to identify newly emerging industries which offer high growth and sustainable results.

About Comtech Group, Inc.:
Comtech Group, Inc. (NASDAQ:COGO) is a leading provider of customized module and subsystem design solutions in China. The Company believes it acts as a proxy to China's technology industry as it works with virtually all the major ODMs and OEMs in China. Comtech leverages these relationships and combines their IP to create designs that Comtech then sells to electronic manufacturers. These designs allow manufacturers to reduce their time to market for new products and ultimately increase sales. Comtech Group focuses on the digital media, mobile handset and telecommunications equipment end- markets for its customized design modules while also offering business and engineering services to its large telecom equipment vendor customers. Over the last eleven years, Comtech has grown its customer list to include more than 200 of the largest and most well known manufacturers across the mobile handset, telecom equipment and consumer markets in China, covering both multinational Chinese subsidiaries and Chinese domestic companies.

About Freescale Semiconductor
Freescale Semiconductor is a global leader in the design and manufacture of embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. The privately held company is based in Austin, Texas, and has design, research and development, manufacturing or sales operations in more than 30 countries. Freescale is one of the world's largest semiconductor companies with 2006 sales of $6.4 billion (USD). www.freescale.com.

For further information contact:
Comtech Investor Relations
www.comtech.com.cn/investorinfo.html
communications@comtech.com.cn
H.K.: +852 2730 1518
U.S.: +1 (646) 291 8998
Fax: +86 (755) 2674 3522

Safe Harbor Statement:
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include statements about our proposed discussions related to our business or growth strategy such as growth in automotive electronics, digital media, mobile handset and telecom businesses, and cooperation with Freescale, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. For a further descriptions of other risks and uncertainties, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings, including our most recent S-1 Form and/or S-3. Copies of filings made with the SEC are available thro;ugh the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov/.